PureHealth divests stem cell business to streamline operations

Image credit: WAM

Abu Dhabi’s PureHealth has divested its entire stake in Abu Dhabi Stem Cells Centre (ADSCC) and Yas Clinic Group as part of the healthcare group’s broader strategy to streamline operations and reallocate resources towards profitable business activities.

The sale will advance the  focus on specialised healthcare services previously offered at ADSCC and Yas Clinic at Sheikh Shakbout Medical City (SSMC). The healthcare platform recently announced the full integration of SSMC.

The healthcare complex features state-of-the-art stem cell therapy facilities and world-class clinical expertise. These services will now be integrated and further developed at SSMC, complementing the overall group operations.

PureHealth’s quarterly revenue surged by 52 per cent to reach Dhs6.1bn, driven by a 10 per cent year-on-year (YoY) increase in patient volumes to 1.5 million. The growth is further underscored by a 10 percentage point rise in bed occupancy rates to 71 per cent.

The firm also said that its hospital revenues rose to Dhs4.8bn.

The group’s gross profit reached around Dhs1.5bn in Q1 2024, a six percentage point YoY increase to achieve a gross margin of around 24 per cent. The increase was attributed to an enhanced patient mix, reduced utilisation rates across the insurance segment, and the ongoing streamlining of operations and cost optimisation initiatives.

Meanwhile, PureHealth’s integrated healthcare ecosystem is significantly contributing to the global healthcare landscape while delivering on the UAE’s mission to elevate the health and wellbeing of citizens and residents.

The group recently made several international acquisitions, including a stake in US-based Ardent Health Services, the country’s 4th largest private healthcare group, and a buyout of the UK’s largest private healthcare group, Circle Health Group.

With a market capitalisation of Dhs46.8bn as of July 24, PureHealth reported approximately Dhs47bn in total assets in the three months to March 31, 2024, including a cash balance of Dhs8bn.

Read: PureHealth soars 69% after nearly $1bn IPO in Abu Dhabi